According to Jaishankar, global supply chains have become fragile under the weight of tariff shocks, climate-related disruptions and geopolitical conflicts. He pointed out that nearly a third of global production still occurs in one country — placing disproportionate risk on supply-chain reliability. Conflicts, sanctions and sanctions-induced financial uncertainties — alongside climate events — have increased the vulnerability for nations that depend heavily on external supplies.
Indian policymakers appear to recognise this shift and are making systemic efforts to reposition the country as a manufacturing hub rather than remain a service-led economy alone. Jaishankar underscored the value of programmes like Make in India as foundational to this strategy — not just to boost output but to foster an industrial culture capable of designing, innovating and producing at scale, instead of simply assembling imported components.
This ambition aligns with broader global supply-chain restructuring trends. A 2025 academic study on global value chains found that while many advanced economies are pursuing a “China-plus-one” sourcing strategy to reduce dependence on any single country, full decoupling from existing supply-chain hubs remains limited. The study suggests that resilience will come as much from diversification across many partners as from building domestic capacities.
India’s industrial and infrastructure investments also reflect this priority. Improvements in highways, ports, rail and energy networks are helping narrow the gap with major Asian economies. These developments strengthen the argument for India as a viable production base. Jaishankar argued that these gains are enabling New Delhi to expand its global footprint, with the country increasingly emerging as a credible alternative for manufacturing and supply-chain diversification.
Global actors are already responding to these shifts. Companies from the United States and Europe are rethinking supply routes, blending sourcing from multiple geographies rather than relying on a single dominant partner. For emerging economies like India, this opens opportunities — but it also requires vigilance. Building a robust industrial base must be accompanied by investments in skills, quality standards, supply-chain governance and regulatory clarity, or risk creating new bottlenecks and dependencies.
Critics caution that over-emphasis on self-reliance could lead to isolation, inefficiencies, and higher costs if global integration is sacrificed. A balance will be needed: prudent diversification, engagement with global value chains, and selective localisation where strategic — especially in sectors like semiconductors, green-energy technologies, critical raw materials and infrastructure components.
The strategic path charted by Jaishankar suggests India intends to play both offence and defence: to reduce vulnerabilities, enhance industrial capabilities and become a compelling alternative in global supply networks — while engaging with multiple partners under evolving trade arrangements.